Melexis plunges to 4-year low on Q4 forecast miss

Melexis NV

30/10/2024 08:12

** Melexis  MLXS.BR  tumbles around 13% to its lowest level
in more than four years after lower-than-expected Q4 sales
forecast due to inventory cuts by automotive customers, slight
Q3 miss 
    ** Belgium's largest semiconductor supplier sees Q4 sales of
between 200 million and 210 million euros, a significant nearly
20% miss to current consensus, J.P. Morgan says 
    ** Q3 sales, gross margin and operating margin also came
slightly below consensus estimates, analysts note
    ** JPM expects 2025 sales to drop by the teens
percentage-wise, with earnings falling by a larger double-digit
percentage, though it's unclear how long the inventory
correction will last
    ** Jefferies says that while 2025 outlook may be weaker than
expected, the sharp reduction in automotive supply-chain
inventories is beneficial for a future rebound from current
weakness
    ** Stock sits at the bottom Belgium's BEL 20  .BFX  index


 (Reporting by Dagmarah Mackos)
 ((dagmarah.mackos@tr.com))